Amazon.com's (AMZN) - Get Amazon.com Inc. Report web services unit is challenging a Pentagon decision to award the $10 billion JEDI contract for military cloud services to Microsoft (MSFT) - Get Microsoft Corporation Report .
In a statement, a spokesman for Amazon Web Services said "Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors, and unmistakable bias -- and it's important that these matters be examined and rectified."
The Pentagon announced the contract award last month.
Amazon dominates the cloud computing space with about 33% of the business, while Microsoft trails with about 16%.
President Donald Trump called for a review of the contract process last summer as incoming Defense Secretary Mark Esper took office. At the time, many pundits were expecting Amazon to win the deal.
Trump has famously feuded with Amazon CEO Jeff Bezos, who owns the Washington Post newspaper. At the time of the review, Trump said he'd received multiple complaints from other companies about the bidding process.
IBM Corp. (IBM) - Get International Business Machines Corporation Report and Oracle Corp. (ORCL) - Get Oracle Corporation Report were eliminated in earlier rounds of consideration.
Amazon has had a tough past month after Nike (NKE) - Get Nike Inc. Report announced it would stop selling their products on its site. The 3rd quarter earnings comfortably beat third-quarter revenue estimates and reported accelerating e-commerce growth but revealed guidance for slower growth in the fourth quarter.
One of the disappointing highlights from their earnings calls was that Amazon Web Services (AWS) posted revenue of $9 billion ($8.995 billion, to be precise), below a $9.1 billion consensus. Annual growth slowed to 35% from Q2's 37% and Q1's 41%. Microsoft also reported its Azure cloud unit saw growth slow as well.
Microsoft and Amazon are holdings in Jim Cramer's Action Alerts PLUS member club.